Let’s see what is a bad credit history, what are the main files of delinquents, what can lead to one, what consequences it has and how to get out.
To have a bad credit history it is only necessary that we are registered in one of the delinquent files that exist. And appearing in delinquent files does not always mean accumulating stratospheric debts for years. Have you ever called us notifying us of an overdraft in the bank of only 30 dollars?
We must take into account the following
The situations that lead someone to appear in a delinquent file, whatever it may be, can be very varied and in some cases, it has not even been caused by it directly, but by a circumstance in which it has been involved. We must start from the fact that the files are automated, do not always work fairly and, therefore, can cause inconvenience and harm to consumers. Let’s see some examples:
- Delay a payment. Delaying, even if notified, may lead the financial institution to the competent authority and to include them in delinquent files.
- Payment forgot. People in general, probably in an induced way, tend to have a very bad image of those people who have unpaid debts, but they do not always act in bad faith. It is possible to simply forget to pay a payment as it is possible to forget the keys inside the house.
- I disagree with the payment. Charging a commission that the client did not know, a higher price than expected on the telephone or Internet bill, a service that he did not know he had subscribed … If we return a receipt with which we do not agree, we can end in a delinquent file.
- Failure to receive an invoice. It is very frequent not to pay a payment because the invoice has not been received where there are concepts, amounts or payment deadlines. And, without being the fault of the client, this can be a file of delinquents.
- Insolvency Not being able to pay, even after several notices, can cause the person to end up in one of these files. Nor should one always blame irresponsibility. It may also be due to an unexpected decrease in income or a complete loss of these. Consider, for example, the high number of layoffs during the economic crisis.
In any case, it is a bad practice of the company or financial to include a person in a file without warning. Before doing so, payment of the debt must be reliably required. Otherwise, the inclusion can be considered illegal and the fine to the company proceeds.
On the other hand, the Central of Information of Risks of the Bank of Spain manages a database in which the one that consists of the loans, credits, guarantees, and risks in general of all the banking entities that operate in Spain. The entities that appear in this database must report on the risks in each of the operations, stating who is involved in them. These are data that allow the Bank of Spain to know how many credits all entities have granted, within the framework of its banking supervision function.
Entities that grant loans to cancel debts
If for any of the above situations we appear in a list of delinquents, we will have problems doing something as usual as an installment purchase, request a credit card or register with a telecommunications company. We will feel marked, guarded and stores, companies, and entities will see us suspiciously.
The first thing to do is to cancel all debts. A useful tool can be the reunification of debts, which facilitates the payment of several loans thanks to its grouping into a single loan, with a single installment. The amount to be paid, month by month, will be less than the sum of all previous installments.
Of course, it implies an increase in the repayment term and, therefore, the final cost of the operation, which involves interest and expenses for early cancellation, opening and, where appropriate, emoluments of the mediating agency.
Try to exit the files
It is essential, therefore, to try to get out of the delinquent files, paying off debts and / or enforcing our rights, following some steps:
- Request the data of our registration. Each file has a procedure to consult the data. You have to enter each website and request it. And you also have to know that everyone is obliged to give us the information.
- Let’s enforce our rights. We can also read the requirements and the procedure to exit the file or use the services of a specialized company to exit the list.
Credits for difficult cases
We do not especially like the concept of “loans for defaulters”, due to the many situations that have led many people to this type of listings, especially during the crisis, which destroyed millions of jobs and hundreds of thousands of small businesses. We prefer to call them personal loans.
There are loans for impossible cases although, depending on the type of product, they may require more or less restrictive conditions, as well as more interest. Each entity, in any case, makes the corresponding risk study and makes the client its proposal: amount, return time, interest, etc.
The best option, in this case, is to search for entities in a loan comparator, such as Good Finance, which started its activity in Spain last year and whose comparisons and classifications are based on two sources of information. On the one hand, a team of expert analysts that reviews every last condition and clause of any product and, on the other hand, its own users, whose experiences and opinions are essential to advise the community and new visitors.